Bitcoin Skepticism Persists Among Finance Professionals
Bitcoin’s acceptance by BlackRock in 2023 marked a significant turning point for the original cryptocurrency, with CEO Larry Fink’s vocal praise and the filing to create a spot bitcoin ETF garnering attention from the finance industry. However, not everyone is on board with the digital currency, as skepticism remains prevalent among some investment professionals.
At a recent event in Miami, Mike Green of Simplify Asset Management dismissed bitcoin as an “extractive bubble” and a tool for transferring wealth. Despite offering funds exposed to BTC, Green maintains that bitcoin has not created any real value. Similarly, Stone X Group’s Kathryn Vera believes bitcoin will not become a reserve currency in her lifetime, citing the importance of traditional currencies in global finance.
Economist Peter Schiff echoed these sentiments, calling bitcoin “gambling money” and predicting its eventual collapse. While some asset managers have embraced bitcoin, others remain hesitant to invest in the volatile asset class. Some firms, like Vanguard and State Street, have chosen not to offer spot bitcoin ETFs to their clients, indicating a broader reluctance within the industry.
Despite the proliferation of bitcoin ETFs from major firms like BlackRock and Fidelity, not all investors are convinced of the cryptocurrency’s long-term viability. Green notes a lack of interest among his peers in understanding the technology behind bitcoin, attributing this to the difficulty of fully grasping the complexities of the digital asset.
As the debate over bitcoin continues to divide the finance industry, one thing is clear – the future of cryptocurrency remains uncertain as traditional financial institutions grapple with the implications of this digital revolution.
